DTN Midday Grain Comments 10/03 11:10

DTN Midday Grain Comments 10/03 11:10 Grain Trade Mixed at Midday Choppy quiet trade at midday. By David Fiala DTN Contributing Analyst General Comments The U.S. stock market is mixed with the Dow down 20. The dollar index is 30 points lower. Interest rate products are weaker. Energies are weaker with crude down $0.60. Livestock trade is mostly lower. Precious metals are firmer with gold up $7. CORN Corn trade is flat to 1 cent higher in quiet midday trade with more sideways trade looking to develop with little fresh news, and overbought conditions. Rains will slow early harvest in many areas in the short term, with cooler near-term weather as well before drier action likely into next week. The ethanol margins have narrowed with the corn rally and the softer energy complex but futures have firmed this a.m. Basis remains flat to weaker with anticipation of more inbound bushels soon. South American corn planting is underway, with second crop shipments out of Brazil remaining active. Weekly export sales remained soft at 562,600 metric tons. On the December contract support is at the 50-day at $3.82 1/4, and resistance the high at $3.91 1/4. SOYBEANS Soybeans is 2 to 3 cents lower in quiet midday trade as well with little fresh news to push the market further with two sided action so far. Meal is 2.00 to $3.00 lower and oil is 45 to 55 points lower. Crush margins remain good, but sustained trade progress is needed to get the market more excited with China buying another 252,000 metric tons today. Economically U.S. export competitiveness remains improved, but the real has faded again helping Brazil with action reversing slightly through midweek. Bean basis remains flat in the interior until harvest expands more. South America has the beginnings of planting underway with mixed rains this week. Weekly export sales were strong at 2.08 million metric tons of soybeans, 158,300 of meal, and 2,500 of oil. On the November chart support is the 10-day at $8.97 with the upper Bollinger Band remaining resistance at $9.17. WHEAT Wheat trade is flat to 4 cents lower with Chicago wheat trying to lead back higher at midday. The Chicago/Kansas City December spread is 85 cents with light widening. The corn/HRW spread has narrowed to 16-17 cents pushing wheat back towards rations. Winter wheat planting should expand more this week, but the market is not providing incentives to plant any more hard red winter acres than necessary with moisture good on the plains for now, while Australia continues to see a bit of dry weather. The dollar break should help competitiveness with 130,000 metric tons of white wheat sold to China. The weekly export sales with 328,500 metric tons sold remain soft. The December Kansas City chart support is at the 20-day at $4.03 which we are testing overnight, with resistance at the upper Bollinger Band at 4.17. David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered adviser. He can be reached at dfiala@futuresone.com Follow him on Twitter @davidfiala (BE) Copyright 2019 DTN/The Progressive Farmer. All rights reserved.